THE EFFECT OF EXCHANGE RATE CHANGES ON TRADE IN EAST ASIA

Willem Thorbecke

Journal of International Commerce, Economics and Policy (JICEP), 2011, vol. 02, issue 01, 85-102

Abstract: This paper considers how exchange rates affect East Asian trade. The evidence indicates that exports produced within regional production networks depend on exchange rates throughout the region while labour-intensive exports depend on exchange rates in the exporting country. These results make sense since the majority of the value-added of processed exports come from imported parts and components while most of the value-added of labour-intensive exports comes from the domestic economy. Recent findings also indicate that imbalances between China and the US are a major outlier and that an appreciation of the Chinese yuan (CNY) is necessary to reduce these imbalances.

Keywords: Global imbalances; exchange rate elasticities; China; F32; F41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2006)
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DOI: 10.1142/S1793993311000233

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